Service Design, Customer Experience and Branding

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Service Design, Customer Experience and Branding 1 Service Design, Customer Experience and Branding - An integrative approach Une Nordli Department of Product Design Norwegian University of Science and Technology ABSTRACT This article takes a look at the service experience (SE) and reviews and discusses it from both the organization and customer perspective. SE is an increasingly important topic in design research as well as for practising designers. A recent update in the discussion was e.g. presented at the “Service experience camp” held September 2013, Berlin. Here the focus was: what it takes to create successful service experiences – from big and small companies, young consultancies and established brands, practitioners and researchers. Elements such as the service experience concept illustrate that there is an increasing need and interest to combine the areas of Service Design, Experience and Branding. Balancing the experience both from a brand and a customer perspective with the help of service design is the focus of this article. It takes a look at how service design, experience and brand are connected to each other, and how a better connection could help improve the customer experience. In the introduction I will present the development of services and the focus on SE. The second and third sections describe the methodology and some important definitions. Section four and five discuss services and introduce service design as an emerging design practice. The customer and organization perspectives on service experience are examined in section six, before I present in section seven how to balance the brand perspective and the customer perspective in order to deliver meaningful experiences. KEYWORDS: Services, Service design, Service Experience, Customer Experience, service Organizations, Service Brand, Brand experience 1. INTRODUCTION Service design as a concept and design practice is a relatively new field, first mentioned in the early 1980s (Shostack, 1982). Services are not tangible, they are closely related to experiences and it is through these experiences that customers perceive value. Today there is a trend that companies selling products add services to differentiate themselves from their competitors (Morelli, 2007). This is now referred to as a productservice experience. A wellknown example is Nike’s collaboration with Apple iPod (See e.g.: http://www.apple.com/ipod/nike/). Throughout history, several authors have mentioned a shift from an industrial economy towards a service economy. Pine & Gilmore also

Transcript of Service Design, Customer Experience and Branding

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Service Design, Customer Experience and Branding

- An integrative approach

Une  Nordli  Department  of  Product  Design  

Norwegian  University  of  Science  and  Technology

ABSTRACT

This   article   takes   a   look   at   the   service   experience   (SE)   and   reviews   and   discusses   it   from   both   the  organization  and  customer  perspective.  SE  is  an  increasingly  important  topic  in  design  research  as  well  as   for   practising   designers.   A   recent   update   in   the   discussion   was   e.g.   presented   at   the   “Service  experience  camp”  held  September  2013,  Berlin.  Here  the  focus  was:  what   it  takes  to  create  successful  service   experiences   –   from   big   and   small   companies,   young   consultancies   and   established   brands,  practitioners  and  researchers.  Elements  such  as  the  service  experience  concept  illustrate  that  there  is  an  increasing  need  and  interest  to  combine  the  areas  of  Service  Design,  Experience  and  Branding.      Balancing  the  experience  both  from  a  brand  and  a  customer  perspective  with  the  help  of  service  design  is  the  focus  of  this  article.  It  takes  a  look  at  how  service  design,  experience  and  brand  are  connected  to  each  other,  and  how  a  better  connection  could  help  improve  the  customer  experience.    In  the  introduction  I  will  present  the  development  of  services  and  the  focus  on  SE.  The  second  and  third  sections   describe   the   methodology   and   some   important   definitions.   Section   four   and   five   discuss  services   and   introduce   service  design   as   an   emerging  design  practice.   The   customer   and  organization  perspectives  on  service  experience  are  examined  in  section  six,  before  I  present  in  section  seven  how  to  balance  the  brand  perspective  and  the  customer  perspective  in  order  to  deliver  meaningful  experiences.  

KEYWORDS: Services,  Service  design,  Service  Experience,  Customer  Experience,  service  Organizations,  Service  Brand,  Brand  experience  

1. INTRODUCTION  Service  design  as  a  concept  and  design  practice  is  a  relatively  new  field,  first  mentioned  in  the  early  1980s  (Shostack,  1982).  Services  are  not  tangible,  they   are   closely   related   to   experiences   and   it   is  through   these   experiences   that   customers  perceive  value.      Today   there   is   a   trend   that   companies   selling  

products  add  services  to  differentiate  themselves  from   their   competitors   (Morelli,   2007).   This   is  now  referred  to  as  a  product-­‐service  experience.  A   well-­‐known   example   is   Nike’s   collaboration  with   Apple   iPod   (See   e.g.:  http://www.apple.com/ipod/nike/).    Throughout   history,   several   authors   have  mentioned   a   shift   from   an   industrial   economy  towards  a  service  economy.  Pine  &  Gilmore  also  

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include  e.g.  a  shift  from  offering  services  towards  an   experience   economy.   In   their   article  “Welcome  to  the  Experience  Economy”  Pine  and  Gilmore   claim   that   “…as   goods   and   services  become   commoditized,   the   customer  experiences   that   companies   create   will   matter  most”   (Pine   and   Gilmore,   1998,   97).   The  experience   economy   emphasizes   that   what  customers  buy  are  not  only  the  benefits  from  the  service   offering   but   also   the   experience   around  what  is  being  sold.    In  his  book  “Service  Design:  Practical  access  to  an  evolving   field”  Moritz  points   to   four  drivers   that  lead  the  service  revolution.  (Moritz,  2005)  

1. The  service  economy  is  booming  It’s   been   a   growth   in   the   service   sector  over   the   last   couple   of   decades   and   in  many   developed   countries,   service  economy  is  now  the  dominant  part  of  the  economy.    

2. The  product  market  is  satisfied  In   the  western   economy   it   is   now  many  different   products   available   in   the   same  product   category   fulfilling   the   same  needs,   and   as   a   result   we   get   hybrid  products   that   ads   service   as   a  differentiator.    

3. Technology  enables  services.  With   internet   and   devices   like   laptops  and   smart   phones   it   rises   a   big  opportunity   to   add   value.   A   lot   of   new  services  are  now  available  like  having  the  bus  ticket  on  your  phone.  The  internet  is  an  enabler  of  services.    

4. Humans  have  individual  needs.  Every   person   has   individual   needs  depending  on  context  and  situation.  For  instance,  the  need  for  guidance  from  an   insurance   company   will   be   different  for   a   person   who   already   has   insurance  than   someone   who   just   bought   an  apartment.   Services   are  more   adaptable  than  products  and  can  be  an  opportunity  to  meet  different  customer  needs.    

 Many  authors  also  agree  that  service  experience  is   personal,   complex   and   that   more   extensive  

research   on   how   to   design   for   the   right  experience   is   needed     (Zomerdijk   &   Voss,   2010,  Gloppen  2009,  Sandström  et  al,  2008,  Berry  et  al,  2006,  Clathworthy,  2012,  Filho,  2012).      In   relation   to   companies,   this   means   that  customer   experience   management,   experience  marketing   and   experience   design   are   concepts  that  have  emerged  as  a  consequence  to  the  idea  of   creating   great   customer   experiences   (Skard,  Nysveen  and  Pedersen,  2011).    Many   customers   experience   poor   service,   even  though  many  companies  state  that  they  focus  on  delivering   great   customer   experience,   and   are  customer   centric.   Customer   experience   is  understood   and   put   on   the   agenda   by   many  companies   (E.g.  Boston  Consultant  Group,  2006)  but   they   do   not   know   how   to   proceed   on   to  improve   the   service   experience.   It   is   also  difficulty  around  understanding  exactly  what  it  is.  Especially   after   the   introduction   of   social  media  there   is   a   lot   of   stories   available   out   there  complaining   about   poor   customer   experience.  Examples   could   be   seen   at   company   pages   on  Facebook  or   blogs   that   rate   the  worst   customer  service  stories  (Forbes,  2013).    An  experience  gap  is  visible  when  businesses  are  claiming   that   their   services   are   superior   while  customers  do  not  agree.  A  recent  study  done  by  Bain   &   Company   shows   that   80%   of   company  managers   believe   that   they   provide   a   superior  customer   experience   to   their   customers,   while  only  8%  of  their  customers  agree  (The  Bain  80/8  phenomenon,  2005).      The   purpose   of   this   article   is   to   explore   the  concept   of   service   in   relation   to   customer  experience   and   brands.   The   core   question   for  such   an   exploration   is   then:   How   to   create  meaningful  experiences?      2. METHOD In  order  to  discuss  this  question  and  to  establish  an   understanding   of   the   service   design   field,  customer   experience,   brand   experience,   service  

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organizations   and   service   brand,   various   articles  and  books  have  been  reviewed.    Most   literature   sources   come   from   service  design,  management  and  marketing  literature.  To  convey  the  literature  and  opinions,  the  article  has  been  structured  like  a  funnel,  as  shown  in  Figure  1.  It  starts  wide  before  going  into  details.  This  to  build  an  understanding  of  what  it  is  all  about  as  a  basis  for  discussion.  After  presenting  services  the  article   looks   into   the   design   of   Services   as   a  design   discipline,   before   the   customer  perspective   and   organization   perspective   on  service  experiences  are  presented  and  discussed.      

 Figure  1:  Structure  of  the  article      3. DEFINITIONS Before   presenting   and   discussing   these   topics  further,   some  underlying   definitions   that  will   be  used  in  the  article  are  presented.        3.1 Service Design  Service   design   is   a   relatively   new   field   of   design  practice   and   is   still   developing.   Since   service  design   consider   complex   services   and   requires  multidisciplinary   design   teams   it   is   hard   to   find  common  definitions.  One  definition  that  explains  it   quite   concise   is:   “Design   for   experiences   that  reach  people  through  many  different  touchpoints  and   that   happen   over   time”   (Løvlie   et   al,   2008,  174).    3.2 Service brand Through   the   article,   terms   like   service   provider,  organization   and   company   will   represent   the  company  offering  a  service.    

3.3 The experience centric organization  The  experience  centric  organization  represents  a  goal   that   companies   should   strive   for.   It   is  designing   and   delivering   services   with   focus   on  delivering  meaningful  customer  experience.       3.4 Experience  At   a   generic   level,   experience   is   defined   as   the  process  of  doing  and  seeing  things  and  of  having  things   happen   to   you   (Merriam-­‐Webster  dictionary).   The   Oxford   dictionary   also   includes  aspects  as  an  event  or  occurrence,  which   leaves  an   impression   on   someone,   encounter   or  undergo   (an   event   or   occurrence)   and   feel   an  emotion  or  sensation  (Oxford  dictionaries,  2013).  The   definitions   above   help   explain   what   this  article   mean   by   experiences.   In   short,  experiences   are   takeaways   from   our   service  encounters   and   emotions   are   the   elements   that  are  triggered  in  our  experiences,  or  recounted  in  our  recall  of  the  experience.        3.5 User, consumer and customer.  A   customer   is   the   one   paying   for   a   service.  Consumer,   on   the   other   hand,   is   the   one   using  the   service.   In   some   situations   this   could  be   the  same   person,   but   sometimes   not.   In   service  design  it  is  more  suitable  to  talk  about  users  than  consumers   because   one   designs   for   every  stakeholder   and   user   involved   in   the   service  offering.   Whether   it   is   an   employee   working   in  customer   service   or   an   end   user   either   using   or  paying  for  the  service  (Small  Business,  2013)    4. SERVICES We   are   surrounded   by   services   every   day.   We  use   the   internet,   we  watch   television,   we   go   to  the  dentist,  we  travel  with  public  transportation,  we   pay   with   our   credit   cards   and   we   use  government   services.   To   provide   services   is   a  natural  part  of  business  in  each  society.  But  now  the   service   sector   is   the   dominant   part   of  many  western   economies   and   it   is   still   growing    (Gloppen,  2009).      

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 A   stronger   competition   between   organisations  providing   services   result   in   a   need   for  differentiation.   More   and   more   services   are  becoming   commodities.   They   are   all   providing  the  same  service  and   it   is  hard   for   the  customer  to   choose   between   the   different   providers.   An  example   can   be   seen   in   the   insurance   sector,  which   is   now   shifting   towards   focusing   on  delivering   great   customer   experience   (See   i.e.  Gjensidigeopplevelsen,  2012).      From   the   “International   classification   of   goods  and  services”  eleven  different  classes  of  services  are   defined.   These   vary   from   insurance,  telecommunications   and   education   to   medical  services   (World   intellectual   property  organization,   2001).     Another   classification   of  services   is   presented   by   Lovelock   (Lovelock   &  Wirtz,   2010)   who   divides   services   based   on   the  degree   of   customer   involvement.   Listed   below  are  some  of  the  most  common  services  available.    

• People   processing   –   aimed   at   physical  care:   healthcare,   fitness   studios,  restaurants  and  hospitals.    

• Mental   stimulus   processing   –   aimed   at  the   mind   of   customers:   education,  entertainment  and  information.    

• Possession   processing   –   aimed   at  physical  possessions  and   tangible  assets:  Repair  and  maintenance  and  cleaning.    

• Information   processing   –   aimed   at  intangible   assets:   Banking,   financial  services  and  legal  consulting.    

 A   problem  mentioned   in   literature   is   that  many  organisations   still   think   of   their   services   as  products,   and   try   to   manage   and   market   them  like   that   (Poline   et   al,   2013).   As   an   opposite   to  products   services   are   not   tangible,   are   not  separable   from   consumption,   cannot   be   stored,  cannot   be   owned,   are   complex   experiences   and  the  quality   is  difficult  to  measure  (Mager,  2004).  It   can   help   defining   what   a   service   is   by  describing   what   its   not.   This   uniqueness   also  influence   the   experience   which   customers   have  with  the  service.    

 Another   central   view   in   the   literature   is   that  service-­‐dominant  logic  refers  to  value-­‐in-­‐use,  not  value-­‐in-­‐exchange   as   with   the   good-­‐dominant  logic.     Value   is   co-­‐created   between   the   service  provider  and  customers.  (Sandstöm  et  al,  2008).      A  concept  to  explain  how  service  experience  can  be   analysed   is   the   notion   of   touchpoints.   These  are   the   contact   points   between   the   service  provider   and   the   customer   and   they   include  everything   from   customer   service   to   websites.  Recent  developments  are  moving   this   to   include  indirect  touchpoints  as  word  of  mouth  and  social  media   (Clatworthy,   2013).   A   common   way   of  thinking  about  services  is  also  to  include  the  time  aspect;   that   the   service   happens   over   time   and  across  different  touchpoints.  This  is  referred  to  as  the   service   journey   concept,   also   known   as  customer   journey.   A   common   way   to   treat   the  journey   is   to   divide   it   into   before,   during   and  after   using   the   service.   It   is   important   to   place  the   people   at   the   heart   of   the   service   journey  and  see  the  journey  through  the  customer’s  eyes  and   through   their   actions,   feelings   and  motivations.   The   journey   framework   considers  both   the   emotional   and   the   physical   journey  (Zomerdijk  &  Voss,  2010).    Another  way   to   look  at   service  experiences   is   to  include   them   in  a  bigger   system.  The  ecosystem  approach   sees   things   in   a   bigger   context,  including  not  only  the  service  it  self,  but  how  it  is  used   in   a   customers   context   (Morelli,   2007).   It  focuses  on  the  interplay  between  people,  actions  and   objects.   The   ecosystem   is   a   systematic  approach   and   three   major   implications   of  ecosystem   thinking   are:   users   as   participants,  interfaces  as  mediating  proxies  and  relationships  as  agents  of  change.  These  three  implications  are  crucial   starting   points   of   the   approach   where  users   are   active   components   in   service  consumptions,   the   interfaces   mediate  communication   between   participants   and   things  change  all  the  time  (Jones,  2012,  Morelli,  2007).      In   a  way   the  ecosystem  and   touchpoint   concept  complement   each   other.   While   the   touchpoint  

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journey  has  a  strong   focus  on   the  customer,   the  ecosystem  puts  the  customer  in  a  bigger  context  looking  at  the  domain  in  which  the  service  exists.  The   negative   about   touchpoints   is   that   they   are  presented   through   one   specific   journey.   This  might   lead  to  not  seeing  all  connections  or  ways  to  use  the  service.  The  ecosystem  tends  to  have  a  strong   systematic   approach,   which   can   lead   to  alienation  of  the  customer,  but   it   represents  the  service  provider  and  stakeholders  involved  better  (Morelli,  2007,  Karjalainen,  2012)    5. SERVICE DESIGN 5.1 Design of services  Service  design  is  a  relatively  new  design  field  and  is  still  emerging  as  a  design  practice.  There  exists  no   common   concept   on   service   design.   Service  design   considers   complex   services   and   requires  an   interdisciplinary   approach   that   combines  different   methods   and   tools   from   various  disciplines.    There  is  no  common  definition  for  service  design,  and  it  is  stated  in  the  book  “This  is  Service  design  thinking”  that  “if  you  would  ask  ten  people  what  service  design   is,   you  would  end  up  with  eleven  different   answers   –   at   least”   (Stickdorn   &  Schneider,  2010,  29).  One  definition  that  is  quite  precise   is   from   the   founders   of   the   design  company   “Livework”.   They  define   service  design  as   “design   for   experiences   that   reach   people  through   many   different   touchpoints   and   that  happen   over   time.”   (Løvlie,   et   al,   2008,   174).  Another   definition   is   that   service   design   is     “a  multidisciplinary  and  systematic  approach,  which  can  cope  with  the  functionality  and  complexity  of  services   by   visualizing   their   systems   and  processes   as  well   as   by   placing   the   client   at   the  heart   of   the   service”   (Stickdorn   &   Frischhhut,  2012,  7).      A   common   criterion   for   most   service   design  concepts   include   the   following   driver:   A  wish   to  make   better   services   for   the   end-­‐users   and   for  the   organisation   as   a   whole   including   all  stakeholders.  This  can  imply  co-­‐creative  activities  by  involving  people  in  the  design  process  through  

creating,   providing   and   consuming   the   service.  Here   the   focus   is   on   delivering   experiences   and  the  entire  domain  of  a  service  offering  should  be  considered.      Service   design   deals   with   everything   from   small  details   in   different   touchpoints   to   business  strategy  and  work  in  between  how  it  is  today  and  how  it  is  tomorrow.  It  operates  at  the  fuzzy  front  end   of   projects   and   the   focus   is   usually   about  finding  the  real  problem  –  through  designing  the  right   service   rather   than   designing   the   service  right.      6.     SERVICE  EXPERIENCE    6.1 The customer perspective – Services as experiences    When   using   a   service   we   all   experience  something.   It   is   through   the   experience   that  we  perceive   the  value  of  a   service  offering.  Value   is  the  evaluation  of  the  experiences.  However,  two  people  could  purchase  the  same  service  offering,  but   the   experience   could   be   very   different.   The  perceived   value   of   the   service   is   then   different.  An  example   could  be  one  person  entering  a  bus  late  for  his  flight  and  another  one  relaxed  on  his  way  home  from  work.  The  two  people  have  two  very   different   travelling   experiences.   An  important   point   is   that   the   experience   is   not  something   that   could   be   ‘sold’   separately   from  the   offering   but   is   connected   to   “how”   the  service  is  delivered.  Offering  alone  is  on  the  other  side  about  “what”  the  service  offering  is.      Experiences  are  one  of  several  factors  to  consider  in   service   design.     They   are   crucial   elements   to  understand   and   consider.   The   customer  experience   is   the   total   sum   of   customer’s  interactions   with   a   service   (Poline   et   al,   2013).  What   makes   the   experience   part   of   a   service  somewhat  hard  to  work  with   is   that  experiences  are  personal  and  emotional   (Pullman  and  Gross,  2004).   They   include   factors   that   are   beyond   the  control  of  management  –  personal  interpretation  of  a  situation  based  on  cultural  background,  prior  experience,  mood  and  many  more.    

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Several   authors   define   a   successful   service  experience   for   customers.   Pullman   &   Gross  define   an   optimal   experience:   “Successful  experiences   are   those   that   the   customer   finds  unique,   memorable   and   sustainable   over   time,  would   like   to   repeat   and   build   upon,   and  enthusiastically   promotes   via   word   of   mouth”  (Pullman   &   Gross,   2004,   553).   Pullman   &   Gross  also   use   the   term   “Flow”   in   optimal   service  experiences.   With   “Flow”   they   mean   that   great  experiences   occur  when   consistency   is   achieved  across   different   touchpoints   in   the   service  journey    (Pullman  &  Gross,  2004).    Customers  do  not  remember  every  moment  of  a  service   experience.   Instead,   they   remember   the  overall   impression   of   the   service.   This   includes  the   pain   and   pleasure,   the   high   and   low   points  and   the   end   of   the   experience   (Chase   &   Dasu,  Cook  et   al.   in   Zomerdijk  &  Voss,   2009).   The  end  of  the  experience  is  said  to  have  a  greater  impact  than  the  beginning.  One  example  could  be  a  long  queue   before   paying   in   a   store.   If   the   payment  and   packing   of   groceries   goes   smoothly   the  customer  might  forget  the  queue.      Experience   could   be   defined   into   two   different  categories.   The   psychologist   Daniel   Kahneman  explains   that   we   have   the   experiencing   self,  which  relates  to  what  is  happening  in  the  present  –  the  here  and  now  aspect.  The  other  experience  is   the   remembering   self,   which   relates   to   the  experience  retrospectively  –  how  you  remember  the   experience   afterwards.   Kahneman   also  concludes   that   all   we   get   to   keep   from   an  experience   are   the   memories.   Therefore   the  remembering   self   plays   a   strong   role   for   further  experiences  and  expectations.  The  memories  are  what   create   expectations   for   the   future  (Kahneman  in  Watkinson,  2013).    People  are  not  just  rational  human  beings.  When  interacting   with   organisations   customers   filter  experiences   consciously   and   unconsciously   and  organize  them  into  a  set  of  impressions  (Berry  et  al,   2006).   This   is   done   both   rational   but   also  emotional.   Emotions   play   a   strong   role   in   the  decision   making   process   of   choosing   services   –  

and  choosing  in  general  (Pullman  &  Gross,  2004).  We   use   our   mood   as   a   source   of   information  asking  questions  like:  “how  do  I  feel  about  this?”.      An   important   aspect   that   affects   the   service  experience   is   the   context.   Pullman   and   Gross  name   this   the   “services   scape”.   The   context   can  be   divided   into   physical   -­‐   dealing   with   the  tangible   and   relational   -­‐   concerning   the  interaction   between   the   service   provider   and  customer   (Pullman   &   Gross,   2004).   Experiences  occur   through   interacting   with   touchpoints.   In  the  literature  touchpoints  are  also  referred  to  as  clues   and   represent   anything   in   the   experience,  its  presence  or  absence  (Berry  et  al,  2006).  It  can  be   small   things   that   influence   the   overall  perception   of   an   experience.   Small   details,   like  forgetting  a  ‘thank  you’  when  the  customer  pays  for   a   product   in   a   shop,   can   break   down   the  service  offering.    For   customers,   a   service   is   something   that   is  being  experienced.  For  the  company  that  delivers  the   service  offering  and  enables   the  experience,  the   service   is   seen   as   a   set   of   processes   and  delivery.      6.2 The company perspective – Brand experience  As   discussed   in   the   section   above   any   service  experience  has  at  least  two  sides,  the  customer`s  and   the   company`s.   In   the   following   section   the  organization   side   of   the   experience   will   be  reviewed.  Services  should  be  perceived  as  useful  -­‐   while   creating   great   experiences   -­‐   in   a   brand  context.      As  previously  mentioned,  to  achieve  competitive  advantage   means   focusing   on   design   and  management   of   customers’   experiences.   A  service  offering  is  delivered  from  an  organization  and   is   enabled   to   customers   through  touchpoints.   The   offering   in   it   self   is   trying   to  deliver   benefits   through   an  experience,   and   it   is  going   to   be   experienced   whether   the   company  design  for  it  or  not.    

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The   customers   are   often   not   interested   in   the  service  provider.  They  are  interested  in  their  own  lives  and  experiences.  It   is  up  to  the  company  to  offer   something   relevant   and   valuable.   Through  these   valuable   service   experiences,   the   service  provider   can   become   a   part   of   their   customer’s  lives.  An  important  aspect  to  consider  is  that  you  cannot   design   or  manage   the   experience   it   self,  but   only   the   prerequisites.   In   a   way   the   service  provider   is   the   facilitator   and   enabler   of  experiences.  They  make  it  possible  to  experience  something  (Pullman  &  Gross,  2004).      A   brand’s   role   is   to   be   distinctive   and  differentiate  the  service  it  sells  from  competitors.  What’s  special   in  the  service  sector  is  that  brand  is   more   connected   to   the   organization   and   the  service  offering   than  with  products.  An  example  is  a   train  company.  The  company   is  a  brand,   the  travelling   service   and   the   service   provider   and  the   travelling   experience   all   at   the   same   time.  From  a  marketing  perspective,  some  authors  see  the   concept   of   brand   experience   as   something  you   add   to   your   main   service   to   add   value   -­‐   a  value-­‐added   service   (Collins,   1986).   The   services  available   are   only   there   to   promote   the   core  service.   The   value-­‐added   services   provide  advantages   for   both   the   customer   and   the  company.  Customers  have  the  chance  to  achieve  something  beyond  their  basic  needs.  An  example  is   the   shopping   experience   at   IKEA.   Some   will  argue   that   the  brand  experience   is  all   about   the  extra   services   like   free   childcare,   dinner  halfway  through   the   store  and  an   ice   cream  before   your  leave  their  store.  This  argument  was  presented  at  the   “Service   Experience   Camp”   in   Berlin,   14-­‐25  September   2013   (Making   Waves   blog,   2013).  Other   examples   of   value-­‐added   services   are  personal   shopper   at   Topshop,   coffee  membership  at  the  gas  station  or  loyalty  cards.      For   service   brands,   successful   experiences   are  when   they   result   in:   a   relationship   between   the  company   and   customer,   that   customers  recommend   the   service   to   others   and   choose  their  company  against  others  (Morrison  &  Crane,  2007).   Getting   the   experience   right   means  gaining   customer   loyalty   so   that   people   are   less  

likely  to  switch  to  another  company  (Poline  et  al,  2013).  Other  outcomes  that  are  mentioned  in  the  literature   in   connection   to   great   customer  experience   for   companies   are   unique,  memorable  and  favourable.      An   important   aspect   of   experiences   is   as  mentioned  earlier  emotions,  i.e.  how  people  feel  about   the   service.   When   offering   a   service   it   is  important   that   the   basic   functional   needs   are  being  covered.  When  covered,  you  can  move  on  to   the  emotional   aspect  of   the   service.  Which   is  how   you   deliver   it,   how   the   service   is   being  experienced.   Firms   compete   best   when   they  combine   functional   and   emotional   benefits  (Berry  et   al,   2002).  Moving   into  emotions  opens  up   a   whole   new   field   of   literature   and   in   this  article   it   is   mentioned   because   it   is   important,  but  not  reviewed  further.        Whether  a  company  likes  it  or  not,  the  customer  experience   is   a   big   part   of   defining   what   the  brand   is  all  about   (Rockwell   in  Lockwood,  2009).  Figure  2   shows  how  experience   is   related   to   the  perception  of  brand.  The  end  users  are  the  ones  that   can   determine   if   the   experience   is   aligned  with  the  brand,  since  the  value  is  co-­‐created  with  the   customers.   Therefore   it   is   important   that  services  are  designed  to  communicate  the  brand  proposition.   Good   experience   design   uses   all  physical   elements   to   support   the   underlying  vision,   metaphor   or   theme   of   the   organization  (Berry  et  al,  2002,  Pine  &  Gilmore  1998).        

   Figur   2:   How   brand   experiences   affect   the  perception   of   the   brand   and   influence   future  expectations  (Rockwell  in  Lockwood,  2009).      

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7. DISCUSSION  One   result   of   the   literature   study   showed   that  optimal  services  should  be  perceived  as  useful  by  customers,   and   that   they   should   create   a   great  experience   in   a   brand   context.   In   other   words,  the   service   and   experience   need   to   be  meaningful   for   both   the   customers   and   the  service  provider.      After   studying   literature   on   service   experience,  three   main   considerations   seem   relevant   to   be  included  on  a  strategic   level   if  a  company  wants  to  become  an  “experience-­‐centric  organization”:    

• The  company’s  strategy  should  be  closer  linked   to   customer   experience,   and   not  only  focussing  on  experiences  separately.  The  experience  is  not  something  that  you  can   add   at   the   end   of   a   design   process  before   launching   a   service.   This   goes  back  to  the  same  discussion  about  design  as   profession.   Designers   don’t   style  products;   they   should   be   a   part   of   the  whole   process   from   designing   to  delivering.    

 • An  aspect  to  study  is  that  customers  and  

the   organisation   do   not   live   in   two  separate  worlds.  They  are  reliant  on  each  other,   and   the   company   wouldn’t   exist  without   their   customers.   Knowing   your  customers   should   be   embedded   in   the  organisation  strategy.  A  lot  of  companies  do  no  not  have  a  clear  knowledge  about  who  their  customers  are.    

 • How   different   motivations   compete  

against   each   other.   A   company’s  existence   is   based   upon   earing   money,  while   customers   use   their   services   to  achieve   something.   Be   aware   of   the  difference   and   try   to   include   both  when  designing   services.   An   alignment  between   the   customer   experience   and  the  company  brand  needs  to  be  in  place.    

 

With   regards   to   the  arguments  above  one  could  then   ask:   Why   is   it   so   hard   to   deliver   great  customer   experience?   Bill  Moggridge   from   IDEO  once   said,   “You   can’t   experience   the   experience  until  you  experience  it”  (Bill  Moggridge  in  Mortiz,  2005,   46).     This   sentence   gives   an   idea   of   how  complicated   it   can  be  working  with  experiences.  An   experience   is   intangible,   and   abstract   and  varies   from   person   to   person.   For   companies   it  could   be   difficult   to   understand   what   customer  experience   is   exactly,   because   there   is   no  common   language   that   is   used   to   talk   about  customer   experience   (Sandström   et   al,   2008).  Companies  are  also  used  to  talk  about  economic  value,  but  measuring  experiences   into  economic  value   could   be   quite   difficult   because   of   its  emotional  aspect.  In  literature  there  exists  a  lack  of   definition   on   both   what   brings   value   to   the  customer,  but  also  how  it  is  created.      From  my   point   of   view   it   is   important   that   you  can’t  design  experiences.  All  you  can  do  is  design  for   the   experiences.   It   is   the   customers   who  finally   decide   if   the   service   and   brand   are  meaningful.        More   and   more   organizations   are   conscious   of  the   importance   of   customer   experience   in  services.   The   experience   centric   service   comes  from   an   experience   centric   organisation  (Zomerdijk  &  Voss,  2010).  To  name  the  success,  a  company   becoming   the   experience   centric  organization  is  the  one  that  have  the  competitive  advantage.   They   are   delivering   memorable,  unique   experiences   that   customers   want   to  repeat   and   recommend   to   others.   A   lot   of  literature   is   available   on   the   topic   of   customer  experience,  but  the  part  about  translating  it  from  words  to  actions   is  missing.  There  needs  to  be  a  change   to   experience   pull   (Stickdorn   &  Schneider,   2010).     This   mean   that   companies  start   thinking   about  what   experience   they  want  to  deliver,  what  the  customer  want  to  experience  and  then  design  the  service  so  that  it  can  deliver  on  that  particular  experience.  The  company  must  ensure   that   the   entire   service   supply   chain   is  focused   on   the   customer   experience   (Zomerdijk  &  Voss,  2007).  

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There   are   different   views   on   what   creates   the  ideal   service   experience.   Both   value-­‐added  services   and   a   consistent   service   experience   are  considered  as  concepts  to  deliver  great  customer  experience.   Although   they   are   different,   they  emphasize   the   need   for   the   service   to   be  meaningful   for   both   the   customer   and   company  providing  the  service.      As   I   see   it   the   argument   about   the   brand  experience   as   adding   something   extra   to   your  main   offering   is   interesting   because   it   implies  that   the   core   service   is   not   enough   to   deliver  great  service  experiences.  There  will  always  be  a  need   to   add   something   extra.   But   what   if  customers  had  enough  of  the  additional  services  like   with   commercials?   This   challenge   has   not  been  widely  discussed   in   literature  yet,  however  from  my  point  of  view   it   is  certainly  a   topic   that  has  to  be  looked  into  more  detailed.      What   is   good  about   value-­‐added   services   is   that  they   are   easy   to   change   when   not   relevant  anymore.   The   brand   and   service   could   be   in  continuous   change   and   adapt   to   people’s   needs  and   expectations.   Sometimes   the   value-­‐added  service   could   also   be   changed   into   a   core  offering.  An  example   is   from   telecommunication  with  SMS  and  MMS.  When   launched   it  was  only  considered  as   value-­‐added   services  making   their  main   offering   better,   but   in   recent   years   this  together  with  data  access  have  become  the  core  service  offering.    On  the  other  hand  we  have  the  concept  of   ideal  brand   experience   as   the   result   of   consistent  interaction   with   the   company   (Mosley,   2007).    Communication   is   important,   but   a   consistent  experience   with   the   brand   is   even   more  important.  The  brand  role  is  to  be  distinctive  and  the  way   to   do   so   is   to   go   beyond   the   “add   on”  role  and  be  better   integrated  within   the  service.  There   is   no   longer   a   need   for  marketing,   only   a  need  to  deliver  great  service  experience  through  the  core  offering.    Fundamental  for  both  concepts  it  that  the  brand  over   time   should   be   associated   with   positive  experiences.  An  example  could  be  travelling  with  

the   airport   express   train.   If   the   train   is   on   time  and   always   clean,   eventually   one   associates   the  positive  travelling  experience  with  the  brand  and  service  provider.      What   we   expect   from   a   service   affects   how  we  experience  it  at  and  connect  it  to  the  brand.  Does  exceeding   our   expectations   contribute   to   better  customer   experiences?   This   is   a   debatable  question,   which   is   not   very   much   discussed   in  literature,   so   the   following   considerations  represent   my   own   thoughts.   On   one   hand,   the  concept   of   providing   a   consistent   brand  experience   might   work   against   the   concept   of  being   memorable   and   exceeding   expectations  because   for  a  service   to  be  memorable   is  has   to  go  beyond  what  we  expect  (Stuart  &  Tax,  2004).  On   the   other   hand   services   can   exaggerate   an  experience  and   thereby  decrease   its  quality.   For  example,   customers   are  not   impressed  anymore  if   the   package   is   delivered   on   time   or   if   the  hairdresser  offers  you  coffee.        To   sum   up   this   point,   when   looking   at   the  customer   journey,   the   company   may   want   to  emphasize  their  brand  during  deliberately  setting  highlights  in  the  journey.  Think  about  the  journey  as   a   dramatic   structure   where   one   manages  peaks   and   low   points.   There   might   be   an  opportunity   to   make   a   stronger   connection   to  brand   values   in   the   most   important   stages   or  touchpoints.  If  considering  the  dramatic  structure  the  company  can  prioritize  where  to  go  “all  in”.      One   cannot   style   a   service   offering   with  experiences.  The  experiences  must  be  embedded  within   the   service.   The   company   need   to   ask  themselves   if   their   service   is   what   customers  need?   One   recommendation   derived   from   the  literature  study  could  be  to  suggest  the  company  go   back   to   the   core   of   their   service   and   make  sure   that   the   service   experience   is   right   and   if  not,   redesign   the   service   accordingly.   The  company  needs  to  consider  how  their  customers  experience  their  services.      Both   ecosystem   thinking   (Jones,   2012,   Morelli,  2007)   and   the   customer   journey   concept   are  

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interesting  regarding  the  service  experience.  Eco-­‐system   thinking   because   all   experiences   exist  within   is   system   of   experiences   –   networked  experience.   The   journey   concept   because   it   can  help   see   how   customers   use   the   service   over  time   and   manage   how   they   meet   different  touchpoints   so   that   they   fit   each   other   and  deliver  consistency.  The  service  designer  uses  the  concepts   in   order   to   zoom   in   on   details   in   the  touchpoints   and   zoom   out,   thinking   about   a  coherent   experience   existing   within   a   bigger  context.  (Poline  et  al,  2013)    Service  design  is  a  relatively  new  design  field,  but  is  more  and  more   included   in   service   innovation  projects.   The   designer   helps   create   both   the  service   and   the   experience.   To   create  experiences   and   services   that   reflect   the  company,   the   service   designer   needs   to  understand   the   service   delivering   organizations  from   the   inside-­‐out,   regardless   of   their   service  offering.  On  the  other  side,  the  designer  needs  to  have   the   outside-­‐in   perspective   to   understand  the  customer  and  their  needs.      Among   others   a   skill   that   the   designers   have  which   could   be   useful   in   creating   the   service  experience   is   visualisation.   A   designer   usually  communicates   abstract   and   intangible   concepts  and   is   used   to   make   abstract   into   something  concise.   What   the   organization   needs   is   not  something   fuzzy   that   needs   more   decoding.  Experience  is  already  hard  to  manage  and  design  for.  An  opportunity   is   to   let   the  service  designer  build  a  bridge  between  an  organization’s  strategy  and   customer   experience   ensuring   that  everybody   is   heard.   A   visual   representation   is  shown  in  Figure  3.  This  can  be  done  through  co-­‐creation,   meaning   that   if   we   co-­‐create   the  prerequisites  for  the  experience,   it   is  more   likely  that   the   experience   becomes   right.   Without  including   the   company   in   the   service  development,  there  is  a  possibility  to  miss  out  on  how   the   service   and   brand   are   in   reality.   The  company  owns  the  reality  and  are   the  ones   that  are   going   to   deliver   the   service   in   the   end.   The  service   designer   needs   to   think   about   both  company  and  people.  Value  creation  can  only  be  

based   on   a   deep   understanding   of   the  organization’s   culture   and   potential,   as   well   as  the   desires   and   needs   of   the   people   using   its  services   (Gobé,   2009).   There   needs   to   be   a  translation   from   brand   manifestations   to   great  customer   experience.   Usually   the   service  designer   takes   the   end-­‐user   perspective.   Their  perspectives  are   critical  of   course,  but  designing  for   end-­‐users   alone   risks   producing   service  models   that   are  misaligned  with   the   capabilities  and  incentives  of  service  providers.    

   Figur   3:   This   figure   shows   the   position   of   the  Service   Designer   as   a   translator   between   the  organization  and  the  customers  needs.      Relating   to   the   findings   above,   I   am   inclined   to  ask  a  normative  question,  namely  whether  or  not  it   is   ethically   right   to   stage   experiences.   A  company   cannot   design   the   whole   experience  itself,   but   designing   for   the   service   and   its  context  will  influence  how  people  experience  the  service.   Trying   to  manipulate   customers  belongs  to   the   past.   When   branding   operated   25   years  ago   it   was   all   about   creating   big   promises   that  they   could   not   keep.   Today   customers   expect  more   transparency,   that   the   companies   are  honest   and   that   they   fulfil   promises   (Abbing   &  van   Gessel   in   Lockwood,   2009).    Other   disadvantages   or   challenges   introducing  the   service   experience   concept   in   organizations  are   that   it   is   both   time   and   staff   consuming.  However,  it  is  reasonable  to  assume  that  benefits  can   outweigh   the   drawbacks   if   one   supports  them  with  appropriate  tools  in  the  future.        

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8. SUMMARY/CONCLUSION  This   article   has   presented   service   experience  from   both   customer   perspective   and  company/brand   perspective.   Today   many  services   exist,   and   experience   is   said   to   be   the  differentiator.   The   literature   is   full   of   concepts  claiming  that  focusing  on  experience  is  good.  But  practical   tools   and   methods   to   show  organizations  how   to  do   it   are   rather   limited.   In  order   to   have   a   cradle-­‐to-­‐   cradle1   –   brand  experience   the   company   needs   to   think   beyond  the  immediate  business  and  rather  focus  on  ways  to   translate   their   brand   story   into   real   life  customer  experiences.      First   there   were   services,   and   then   there   were  designers   designing   them.   But   now   there   is   an  opportunity   for  designers   to   tell  businesses  how  things  could  be  done.  Questions  to  be  asked  are  e.g.  how  does  an  experience  centric  organisation  look   like?  What  must   they  do   to  get   there?  One  way   to  meet   these   questions   could   be   that   the  service   designer   and   service   provider   co-­‐create  the   prerequisites   for   the   service   experience.   In  this  collaboration  the  designer  needs  to  combine  the  customer  and  company  perspective.      9. FURTHER RESEARCH  Considering   the   designer   as   a   “translator”   of  customers’   needs,   (Verganti,   2003),   one   has   to  figure  out  how   to   facilitate  communication.  One  possible   way   to   interpret   organizations  perceptions  of  brand,  services  and  experiences  is  e.g.  to  develop  a  tool  which  enables  the  company  and   designer   to   discuss   common   solutions.   The  practical  part  of  this  project  will  explore  a  way  of  considering   customer   experience   in   an   early  phase  in  a  service  design  project  together  with  a  service  provider  in  order  to  find  out  what  makes  a  good  service  experience  for  both  the  company  and  its  customers.       1 A cradle-to-cradle service experience is in my opinion given

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